WHISTLE BLOTHEYR POLICY

As a conscious and vigilant organization, Maruti Suzuki India Limited believes in the
conduct of the affairs of its constituents in a fair and transparent manner by
adopting the highest standards of professionalism, honesty, integrity and ethical
behaviour. In its endeavour to provide its employee a secure and a fearless working
environment, Maruti Suzuki India Limited has established the "Whistle Blotheyr
Policy". The purpose of the policy is to create a fearless environment for the
employees to report any instance of unethical behaviour, actual or suspected fraud
or violation of the Company's code of conduct or ethics policy to the Ombudsman.
The framework of the policy strives to foster responsible and secure whistle blowing.
This policy should be read in conjunction with applicable regulations & existing
policies & procedures of the Company. You can also contact the Secretarial & Legal
Department if you have any questions or need any clarifications.

RECRUITMENT FOR FRESHERS They recruit fresh Graduates from premier T-Schools
and B-Schools across the country in order to build our future leadership talent
pipeline. . At MSIL, they give ample opportunities for learning & growth through
hands-on experience & rigorous training sessions. The young talent undergoes a
structured induction, buddy & umbrella mentoring sessions, periodic management
inputs and cross functional exposure. With their exciting career paths coupled with
hard work & dedication from your end, they believe that you will keep on creating
success stories in MSIL. Recruitment Process: RECRUITMENT PROCESS FOR
EXPERIENCED PRO For the last three decades, they have established themselves as
the Market Leader in Automobile sector in India. They appreciate the Knowledge &
expertise that the experienced professionals bring with them, and they come from
diverse backgrounds to strengthen the business pillars and explore new horizons
with us. They invite applicants, who Are excellent performers with enthusiasm for
constant improvement Have intense desire to be a member of the organization and
its success with a constant yearn to learn Are star performers, put in extra effort &
are committed to engage in work that contributes to business success Recruitment
Process: 7

FRAUDULENT RECRUITMENT POLICY AT MARUTI The company’s attention has been

drawn by certain members of the public that they have received communication
through e-mails for job interviews in our Company wherein they are amongst other
things, demanding cash deposit(s) in certain specified bank(s) before the actual
interviews. These individuals/recruitment companies are also wrongfully using the
company's registered trademark as theyll as using the names of certain officials of
the company to lure innocent members of the public to fall into this trap. They like
to categorically state that these communications are purely made with intend to
defraud the public and the company has not authorized any person to require any
payment /cash deposit to be made by any candidate to our company and/or to any
individuals in the recruitment process. They urge the public not to be misled by such
communications purportedly made by our company including through e-mails.
Should you require any further information about genuinity or otherwise of such
communications which you may receive, you are requested to please get in touch
with our official e-mail address: recruitment@maruti.co.in or our aforesaid address.

SELECTION It is the process of searching the potential candidate. It is negative in

nature in the Indian context. But it is positive in the US context. Steps in Selection
Process of Maruti Udyog ltd Selection process consists of a series of steps, at each
stage, facts may come light which may lead to the rejection of the applicant. It is a
series of successive hurdles or barriers which an applicant must cross. These hurdles
or screens are designed to eliminate an unqualified candidate at any point in the
selection process There is no standards selection procedure to be used in all
organizations or for all jobs. The complexity of selection procedures increases with
the level and responsibility of the position to be filled. 1} Preliminary Interview
(screening applications) 2} Application Form 3} Selection Test 4} Employment
Interview 5} Medical Examination 6} Reference Checks 7} Final Approval 8}
Employment 9} Induction 10} Follow – up (Evaluation) 9

TRAINING AND DEVELOPEMENT Maruti have invested about Rs 12 crore in their

training program .recently they took a decision to establish a world class Maruti
training centre which might come up on a 6-8 acre plot. This kind of infrastructure
will operate in decentralized manner. It will have a residential facility, an e learning
facility and will look at the perspective of developing our own technician level guys
for which campus recruitment take s place. Maruti arranges training at several
intervals. The training is mandatory for all the employees. The training schedule is
maintained by the Hr manager. TRAINING AND DEVELOPMENT is a subsystem of an
organization. It ensures that randomness is reduced and learning or behavioural
change takes place in structured format. TRADITIONAL DEVLOPMENT AND MODERN
APPROACH OF TRAINING AND Traditional Approach – Most of the organizations
before never used to believe in training. They are holding the traditional view that
managers are born and not made. There are also some views that training is a very
costly affair and not worth. Organizations used to believe more in executive
pinching. But now the scenario seems to be changing. The modern approach of
training and development is that Indian Organizations have realized the importance
of corporate training. Training is now considered as more of retention tool than a
cost. The training system in Indian Industry has been changed to create a smarter
workforce and yield the best results Importance of training        Optimum
utilization of resources Development of human resources Development of skills of
employees Productivity Team spirit Organization culture Quality  Health and safety
T&D aids in organizational development. Organization gets more effective in decision
making and problem solving. It helps in understanding and carrying out
organizational policies. T&D helps in developing leadership, motivation, loyalty,
better attitude, and other aspect that workers and mangers usually display.

TRAINING PROCESS FOR SALES EXECUTIVES.:

INDUCTION: - aims to provide an understanding of the industry, MUL, Its policies and
products (2days). PRODUCT PROGRAMS:-imparts complete knowledge on MU and
its competitors. Various programs are Segment A1, Segment A3.(2 days ) SELLING
SKILLS/CONSULTIVE SELLING PROCESS: - enables understand customers needs, sales
processes etc and enables apply learning in actual selling (2 days ) CUSTOMER CARE:
- appositive attitude and the ability to move is a pre requisite for excellent
performance in any world. Program aims at helping one to build a positive attitude
and interpersonal skills and to enable better customer handling. ADVISOR FOR LIFE
PROGRAM:-in this changed competitive environment, role of dealer sales executive
is seen more than a person who is selling cars to the customers. He is expected to be
the customer’s for life .he has to be “single window interface” with his customers on
all matters related to cars, that is, finance , insurance , Extended warranty , service
etc.( 2days ). The training program on’ Delivery Process’ has been developed as
delivery now has the maximum the right age in the new factor structure. Delivery is
not the end of a sale but a beginning of a relationship. TRAINING PROCESS FOR
SALES MANAGERS / GENERAL MANAGERS/ BRANCH HEADS 1. Dealership
Management Program: -For second generation dealers, and GM’s and Ro executives
on how to manage entire Dealership Operations. Financial Management, staff
management , motivation, tie management planning are covered. 2. Sales
Managers/Team Leaders Program: The Training covers issues like Sales
management( target setting and achievement, enquiry management, resource and
time management etc), Supervisory skills ,Practical Coaching skills, knowledge of
Maruti Finance, Maruti Insurance Extended warranty, MGA, True value etc and car
advisor for life concept.(2 days ) 3. Branch managers Program: many of the dealers
have multiple outlets. While the owners sit any one outlet and control the others
from there, different branch heads that managers the day to day operations of the
outlet manages the other outlets 4. The training covers topics like- making the
business plan, Fundamentals of DBP, Hr management, Team building and supervision
skills, ability to motivate the team and get a buy in on the business plan , time
management/ prioritizing etc.

MAT TER USUALLY DISCUSSED IN THE MARUTI INDUCTION        Overview

of Maruti Suzuki. Building understanding of the car market in India and various
segments. Understand MUL. Product range and positioning in each segment.
Understanding the basics in the automobile industry. Role of financing as a sales tool
and the various financing options available. Ensuring personal effectiveness.

PERFORMANCE APPRAISAL  MUL to change gear on performance appraisal -- 100%

link between pay, productivity RENEWING its efforts at cutting costs and improving
productivity, Maruti Udyog Ltd (MUL) has drawn up a new human resources policy,
which for the first time, entirely links performance to pay packets for all its
executives and managers. MUL has traditionally had a performance-based
component of about 30 percent in its compensation package for its executives. But
now it has gone the whole hog and decided that in addition to the hike in individual
perquisites, increments to even the basic salary will now depend on the employee’s
performance during the year. The new performance appraisal and compensation
system is likely to affect over 1,000 employees -- executives and senior and middle
level managers. Company officials said the changeover to a completely performance-
based compensation system has been under discussion amongst MUL's senior
management and directors for quite some time now. So, the new appraisal process
has not come as a surprise for most of the employees and has been accepted by
them, the official said. Over the past, the principle underlying the new system has
been communicated at length throughout the company and feedback has been
obtained. In the run-up to the new remuneration system, the company has also
developed a new performance measurement and development method along with
the noted consultant, Mr M.B. Athreya. The performance measurement process will
complement the new remuneration s ystem.MUL sources said rather than appraise
employees through confidential reports; the new performance measurement system
involves an interactive process of goal setting, review and counselling by managers
throughout the year. It incorporates qualitative aspects, along with quantitative
targets. The employees are being put through workshops to train them on the
various aspects of the system developed with Mr Athreya. The new system will take
effect from this year. The new system is expected to help enhance managerial
performance and skills, while making the organisation more capable of assessing its
costs and returns.MUL, which has been beleaguered by low margins and a falling
bottom line, has also been forced to take a hard look at its costs this year. For the
first time, MUL has slipped into the red and recorded a loss during the year 2000-01.
 MUL has also drawn up a voluntary retirement scheme (VRS) for its employees.
The VRS programme received in-principle approval from the board last month. While
the VRS proposal is yet to be formally notified and offered to the company's
employees, it is expected to apply equally to all the staff members, including the
shop floor workers, company sources said.

MARUTI ADOPTS “360 DEGREE” APPRAISAL SYSTEM Maruti has introduced a

unique 360-degree feedback system, starting with its senior leadership. The new
system has been co-developed with Ernst & Young and has been put in place
recently. Under the 360-degree feedback system, the employee is rated not just by
his superiors, but also by his peers and subordinates Employee to be evaluated not
just by the superiors but also by the peers and subordinates. It would seem that
there is no corporate human resource policy that has not had its share of
controversies for being biased. With an increase in the number is qualitative factors
that affect employee at the workplace, the performance appraisal process to make it
as fair as possible has been the dream of every manager. Its initiative is to empower
young people in terms of free and frank feedback to their seniors, to the people who
manage them. Each senior gets a sample feedback from a group of 12-14 people, out
of which 5-6 would be juniors , 5-6 colleagues and 2-3 their superiors. This is done
through an online process to maintain confidentiality. The person also evaluates
himself. After that, profiles would emerge. Based on this, there would be aggregate
profile versus self profiles. The 360-degree feedback system will also include a self-
appraisal by the general manager. At the end of the process, he can compare his self-
appraisal with the assessment of his subordinates and peers. One of the benefits
that Maruti is hoping to get out of the 360degreefeedback process is the sense of
employment and importance felt by subordinates, when they are asked to offer their
feedback about their superiors. Maruti currently has over 4,000 employees on its
rolls. FINDINGS They treat all employees equally They tries their best to increase the
efficiency of the employee by providing them with different motivational programs
They make new recruits aware about the company and working conditions Maruti
focus on each and every department of the organization Having different
recruitment process for different departments of the organization They provide
different types of training to the different department according to the need of the
people They talk feedback from there employee on regular basis Maruti have
adopted 360 degree method of performance appraisal for their employees

PROMOTIONAL POLICIES Exit interviews, when employees quit, are common

practice in many companies. But automobile major Maruti Suzuki (MSIL) is using
'stay interviews' to cement a long-term tie with its employees. For the past three
years, MSIL has regularly reached out to its employees to understand their
aspirations, problems and expectations. It has subsequently come up with several
changes in the performance ratings scale, career progression policy and employee
referrals. It makes sense to probe employee minds while they are still working in the
company and take their feedback for changes rather than asking for it after losing
them to competition. For the first time this year, for instance, it altered its
performance ratings scale. The previous four-grade rating scale, which was: excellent
(top 10%), very good (next 30%), good (next 50%) and fair (last 10%), was revised to
a five-grade scale: exceptional (top 10%), star performer (next 25%), high performer
(next 25%), performer (next 15%) and average (5%). Employees perceived a 'good'
rating as 'not-so-good', meaning, the rating's connotation was not representative of
performance. Also, adhering to the bell curve was becoming difficult with ratings
primarily being distributed only in the first three categories. "Wording makes a lot of
difference about how people feel. For instance, someone who gets the grade
'exceptional' will think he has contributed a lot towards the firm's performance and
will continue to perform well," says Prateek Duhan, 28, manager, steering and
suspension, supply chain division. "They made our employees happy by making an
emotional connect and removing grades such as 'good'," adds Mr Siddiqui. Based on
the feedback, the company has also changed its career progression policy last year.
The company shortened career tracks by offering promotions at the junior
management level if employees notched up the topmost grade for two, instead of
three consecutive years.